Munis and TIPS Beckon
Is now an opportune time to add exposure to these hard-hit asset classes?
A version of this article was published in the February issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor here.
As most equity markets surged to record highs in 2013, the summer sun burned the bond market. It was a challenging environment for many fixed-income funds in 2013, as the broad-market benchmark Barclays U.S. Aggregate Bond Index lost money for the first time in more than 15 years. Then-Federal Reserve chairman Ben Bernanke rattled the bond markets with his announcement in May that suggested the Fed would start to taper its purchases of bonds sooner than expected. That prospect sent ripples throughout the bond market, and many fixed-income sectors took it on the chin during the summer months and haven't fully recovered.
Michelle Canavan Ward, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.